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IB06

International Business

(For CNM Cases)

Assignment – II

Assignment Code: 2016IB06A2                                                     Last Date of Submission: 30^th April 2016

                                                                                                                   Maximum Marks: 100

Attempt all the questions.  All questions are compulsory and carry equal marks.

Section-A

1.         a)         What   to  you   understand   by   Global   Finance   Market? Discuss  international

                        investment decisions and moving money across borders

            (b)        Discuss the role of foreign factories in domestic markets.

2.         Write short notes on:           

            i.          Strategic Alliance

            ii.         Mergers and Acquisitions

            iii.        Free Trade Area/Agreement

            iv.        Joint Ventures

            v.         Customs Union                                                                                                   (5x4)

3.         a)         Discuss   different   types   of   Regional  Economic  Integration.   What   are   the                                     advantages  and disadvantages of Regional Economic Integration in international                        Business?

            b)         Govt. of  India   has   allowed  FDI in Indian retails sector in Dec.2012.  Discuss the                       salient features of FDI policy in Indian Retail Sector.

4.         Aligned Documents System in International Trade plays a vital role. Discuss the    Commercial and Regulatory Documents used in the International Trade. How these             documents are different from each other? 

 

Section-B

Case Study

Read the following case carefully and answer the questions given in the end:

A Foreign Company has been exporting its Nylon product to India for the last one year on the lower price normally it charge in its own country. Selling of the product at lower price has resulted into the direct injury to Indian Nylon Industry by way of loss of market share, reduction in profit, loss of production and job loss. The Industry filed an application with the Director General of Antidumping and Allied Duties (DGAD) for investigating these imports at low price.

            DGAD initiated the investigations and asked for the production cost data from the domestic and foreign companies involved in the case. But the foreign company did not give the production cost data in the name of business secret. DGAD took the cost of production of similar product from the 3^rd country and fixed the normal value of the product vis-a vis the price of the domestic industry.   It was found that the normal price of the like product in India is Rs. 50/- per unit where as this foreign company is selling the same product at Rs. 35/- per unit. The foreign company is selling this product in their own country at Rs. 45/- per unit. The market share acquired in India by this foreign company alone is more than 10% and the total imports of this product come to 15% of the market share. As per Article –VI of antidumping agreement DGAD is empowered to determine anti dumping duty if the dumping margin is more than 2% in a particular case.

Questions:

a)         Do you feel there is a dumping by foreign company in this case? If yes, support your        answer with evidence in the light of GATT Antidumping Agreement.

b)         Calculate the Antidumping Margin for imposing antidumping duty on the foreign             company.

c)         In India which Govt. department is empowered to notify the antidumping duty once it is determined.